Accounting 0452 · IGCSE · Accounting principles

Accounting principles — practice question

Which statement gives the correct description of the principle of realisation?

  • AProfit is earned when a cheque is received from a customer in payment for goods supplied.
  • BProfit is earned when a cheque received from a customer is paid into the business bank account.
  • CProfit is earned when the goods are supplied, and ownership passes to the customer.
  • DProfit is earned when the customer places an order for the goods.

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